Look out, not in

Market Insights
4 years ago
2 minutes

As the price of inner-city homes increases, affordable suburbs further away from urban hubs are becoming more popular. According to Propertyology, a leading Australian property management company, the number of properties in the outer suburbs of Australia’s capital cities has trebled in the last twenty years.

After analysing 103 regional cities and towns, Propertyology’s research indicates that while homes in the inner-fringes of capital cities rapidly gained value, homes in places like Sydney’s Parramatta also achieved annual growth.

“The research clearly shows that regional real estate has just as much potential as that in capital cities which is why smart investors will make an objective assessment of every location in Australia before buying,” Propertyology’s Head of Research Simon Pressley said in his article.

“Generally speaking, locations with a more affordable median house price have more potential for capital growth. For that potential to be realised, the real skill lies in being able to identify locations with positive leading economic indicators,” he added.

This is good news for home buyers who can’t afford property in the inner-city but worry about the long-term investment of purchasing in more regional areas. Developments like Wandana near Geelong and Watagan Park near Lake Macquarie are safe bets in terms of price against value.

Homes along Victoria’s surf coast have seen annual growth of 9.5 per cent (20-year average) and hold average rental yields of 3.1 per cent. And yet home buyers can still obtain a house and land package at Upper Point Cook for just over $300,000.

Meanwhile, the region of Logan in Queensland has achieved annual growth of 6.8 per cent and holds a rental yield of 4.7 per cent. With property sitting at around $425,000 for established homes, and an extensive motorway connecting the suburbs within the region to both Queensland and Brisbane, it’s an ideal place to settle down.

Sequana in Logan Reserve offers house and land packages for as low as $199,000. Close to the Logan River, and yet connected to urban conveniences like Logan Hyperdrome (one of Australia’s largest shopping centres) families can grow comfortably here while the home values increase over time.

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Sources: Propertyology

Hero image: Watagan Park